Government gears up to conclude fourth post-bailout review

Government gears up to conclude fourth post-bailout review

The Greek government is attempting to wrap up the prior actions required in the context of the fourth post-bailout review of the country’s economy by its international creditors.

According to sources, the reform of the energy market is currently a top priority of the Mitsotakis administration, as Athens hopes for a positive report on the Greek economy by the European Commission on 20 November.

Moreover, the Greek side is working on the details of the so called “Hercules” plan to reduce “bad debt” held by the country’s four systemic banks. The scheme is not part of the prior actions agreed with creditors, nevertheless, it is considered pivotal to sustaining economic recovery.

Finance Minister Christos Staikouras expressed optimism last week that the fourth review will be concluded successfully, within the expected time-frame.

Other issues that need to be addressed by the government include the repayment of state arrears to private individuals and businesses. A plan has been forwarded to the European Commission for review, as the Mitsotakis administration reportedly plans for full repayment, including outstanding pension payments, by 2021.

Additionally, the government is said to be drafting plans to reshape a framework protecting primary homeowners from foreclosures. It has also begun talks with creditors over a new bankruptcy code for individuals.

The next surveillance report on Greece by the institutions is expected to be presented at the 4 December Eurogroup meeting. Meanwhile, a final decision on whether European central banks should return their profits from Greek bonds to Athens has been put off. Athens hopes to make use of SMPs and ANFAs toward investments./ibna